HomeBusinessUS trucking company Yellow...

US trucking company Yellow shuts down operations, Wall Street Journal reports


July 31 (Reuters) – Cash-strapped U.S. trucking company Yellow Corp (YELL.O) has ceased operations and is filing for bankruptcy after failing to reorganize and refinance over a billion dollars in debt, the Teamsters Union said on Sunday.

Yellow, formerly called YRC Worldwide, did not immediately respond to a Reuters request for comment.

Earlier this month Yellow averted a threatened strike by 22,000 Teamsters-represented workers and last week it said it was exploring opportunities to divest its third-party logistics company.

“Yellow has historically proven that it could not manage itself despite billions of dollars in worker concessions and hundreds of millions in bailout funding from the federal government,” Teamsters General President Sean M O’Brien said in a statement.

The company was the third-biggest U.S. trucker specializing in the less-than-truckload segment that combines shipments from different customers in the same trailer.

Its customers included large retailers like Walmart (WMT.N) and Home Depot (HD.N), manufacturers and Uber Freight, some of which paused cargo shipments to the company for fear those goods could be lost or stranded if the carrier went bankrupt.

The company said in June that the Teamsters Union was blocking restructuring and modernization efforts, collectively known as “One Yellow”, which it said were critical for Yellow’s survival and ability to refinance about $1.3 billion of debt due to be repaid by 2024.

Part of that debt is a $700 million pandemic relief loan provided in 2020 by the Donald Trump-led U.S. government in exchange for a 30% stake in the Nashville, Tennessee-based company.

Earlier in the day, the Wall Street Journal reported the closure of the trucking firm’s operations citing notices sent to customers and employees. On Friday, the WSJ also reported that the company has laid off a large number of nonunion workers.

Reporting by Yana Gaur, Urvi Dugar and Bharat Govind Gautam in Bengaluru; Editing by Chris Reese, Stephen Coates and Nivedita Bhattacharjee

Our Standards: The Thomson Reuters Trust Principles.



Source link

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

Read Now

Toyota Recalls Over 600,000 Trucks and SUVs Over Safety Concerns

More than 600,000 Toyota pickup trucks and SUVs in the United States were voluntarily recalled over the past week because of different issues that could increase the risk of crashes, the vehicle manufacturer said.The first announcement, on Feb. 21, stated that about 280,000 vehicles, including Toyota...

Pak-Iran gas pipeline: Cabinet defers plan to appeal against US sanctions

The caretaker federal cabinet has approved the postponement of the plan to file an appeal against the US sanctions under the Pak-Iran Gas Pipeline project ...

Stock futures inch lower Tuesday night as investors await fresh inflation data: Live updates

An Hour AgoInvestors should eye emerging markets and small caps outside of the 'Magnificent 7' stocks, Richard Bernstein says Investors should turn their attention to alternative investments including small caps and emerging markets outside of the "Magnificent 7" stocks, according to Richard Bernstein Advisors chief Richard...

Bettman on Jets’ future: ‘I believe this is a strong NHL market’

WINNIPEG — It’s not Gary Bettman’s presence in Winnipeg that’s alarming to Jets fans. It’s his purpose.The NHL commissioner drops in on most markets over the course of a typical season. He addressed Winnipeg media last season, opening his remarks by saying he had no emergency to address or news...

Pokémon Legends: Z-A Is Apparently Set “Entirely” Within Lumiose City

Past Pokémon games have typically required aspiring trainers to go out and explore the world, but the newly announced Pokémon Legends: Z-A for "Nintendo Switch systems" could be a little different. In case you missed the initial announcement, this upcoming release will supposedly be "set entirely within...

Bears offer hint at Justin Fields-Caleb Williams decision while trying to say nothing

INDIANAPOLIS -- The Bears maintain that they arrived in Indianapolis for the 2024 NFL Scouting Combine still early in the information-gathering stage of their franchise-defining quarterback journey. Both general manager Ryan Poles and head coach Matt Eberflus talked Tuesday in Indianapolis, painting a picture of a...

Crosstown Trade: White Sox and Cubs swap pitchers

The White Sox and Cubs swapped minor-league pitchers, the South Side announced. The Cubs are sending Bailey Horn to the White Sox in exchange for Matt Thompson. The trade helps the Cubs open a roster spot for Cody Bellinger, who they recently re-signed to the tune...

A surge fee on your Frosty? Wendy’s to test ‘dynamic pricing’ in 2025.

The deals at Wendy’s may soon not be as square as their burgers.The fast-food chain is set to start experimenting with dynamic pricing at company-owned stores next year. Wendy’s CEO Kirk Tanner said the company will soon spend $20 million to swap in digital menu boards,...

Gary Sinise’s Son Mac Dies Of Rare Cancer At 33

Gary Sinise foundation McCanna “Mac” Anthony Sinise, the musician son of actor Gary Sinise, has died of the rare spinal cancer Chordoma, the Forrest Gump star announced today. Mac Sinise, who had recently completed work on his album Resurrection & Revival, died on January 5 following a years-long...